$33,500? He probably could have gotten WAY more on the black market. This is ultimately the problem with stingy bug bounties.

How is it a problem?

Its a fact of life that we are daily confronted between the choice to do the right thing and the choice to screw someone over for money.

My neighbor went on vacation, they gave me the keys to the house to water the plants, and bring in her mail. I could turn a tidy profit passing the information that the house is empty to a ring of thieves, steal her identity, and strip her car.

Or I can just water the plants and usually receive a bottle of wine or other small thank you gift.

I had the 'keys to her kingdom', and she repaid my responsible behaviour with a token. Should I complain she's being stingy, and call it a huge problem too?

Giving you the 'keys to her kingdom' sounds like a pretty generous repayment for watching over her house, assuming she's at least somewhat attractive.